Sales AMD Epyc CPUs to increase in third quarter, but data center market is declining

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With the new ZEN2 architecture coming up AMD enters an exciting time. AMD's Epyc server and data center CPUs both in sales and share compared to Intel are to increase in Q3 this year. The new generation of chips based on the Rome architecture produced at 7nm, of course, will be responsible for that AMD's CEO Su already acknowledged that global data center sales in the first half of 2019 are rather weak.



Albeit Digitimes does not explain specifically as to why, they do mention that the server market, in general, is not doing so well at the moment, and that might have an effect on AMD's sales negatively impacting it. 

In the first quarter of 2019, Intel cloud computing business group's revenues slipped 6.3% on year, while those coming from enterprises and governments even dropped as much as 21%. As suppliers for the cloud computing datacenter segment are still clearing their inventory, and US-China trade tensions have created uncertainties, demand for datacenter servers has been decreasing since early 2019 and may cause Intel's datacenter business group to suffer its first on-year revenue decline in 10 years in 2019. In addition to Intel, Nvidia, Xilinx and Texas Instruments (TI) are also conservative about demand for cloud computing servers in 2019. Nvidia has seen decreased sales for two consecutive quarters for its GPU products for cloud computing servers and expects weakening demand to last into mid 2019. Nvidia's order visibility is currently still weak. The US sanctions against Huawei has also undermined the server revenues of Intel and Nvidia as both have been major suppliers of the China-based company. China reportedly plans to boycott products from US-based chip suppliers including Intel. China has contributed around a quarter of Intel datacenter business group's revenues.

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AMD Rome - 32c/64t Epyc processor for the datacenter

Sales AMD Epyc CPUs to increase in third quarter, but data center market is declining


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